GeoPark Plans to Invest $7 Billion to Develop Venezuela's Bare Oilfield

en.Wedoany.com Reported - On September 29, Felipe Bayon, CEO of Latin American oil and gas producer GeoPark, said the company plans to invest approximately $7 billion in the Bare oilfield in Venezuela's Orinoco Heavy Oil Belt, aiming to increase crude oil production from the current approximately 11,000 barrels per day to about 90,000 barrels per day by 2038. GeoPark signed a 25-year production participation contract with the Venezuelan side this month and plans to take over operations starting in December this year.

The Bare oilfield has original oil in place of approximately 15.7 billion barrels, with cumulative historical production exceeding 700 million barrels, and currently has about 1,100 wells and existing production facilities. GeoPark disclosed that the oilfield's historical daily production once exceeded 100,000 barrels, with current gross production at approximately 11,000 barrels per day, and a planned peak production of 85,000 to 95,000 barrels per day; according to the company's development plan, GeoPark's net production plateau target is 55,000 to 62,000 barrels per day, to be maintained for more than 10 years.

The project will be advanced through a phased redevelopment approach. The first phase plans to reactivate up to 1,100 existing wells, with approximately 80 additional horizontal wells potentially drilled subsequently, alongside concurrent rehabilitation of existing infrastructure and production capacity restoration. GeoPark expects that the entire development plan will increase the oilfield's recovery factor from the current approximately 4%–5% to 8%–9%, with the company's cumulative net production target during the contract period at approximately 400 million barrels.

Under the contract arrangement, GeoPark will serve as operator and bear 100% of capital expenditure under the approved work program, holding a 65% net working interest. The contract grants the operator rights including direct crude oil sales and monetization, use of key infrastructure, and operational control; the contract's formal effectiveness still requires completion of relevant approval, authorization, regulatory, and sanctions compliance procedures, with GeoPark expecting a maximum processing period of approximately 120 days.

GeoPark currently has approximately $700 million in available liquidity and committed or under-negotiation funding sources, including approximately $310 million in cash, for initial investment in the Bare project as well as the company's development plans in Colombia, Argentina, and other locations. The company expects that with the Bare project and the Vaca Muerta production increase plan in Argentina advancing together, its overall production could reach 75,000 to 85,000 barrels of oil equivalent per day by 2030, approximately 2.7 times the current level.